# ESIC penalties/Damages **URL:** \ **Category:** Payroll\ **Created:** [January 25, 2021, 10:21am UTC](https://community.greythr.com/t/esic-penalties-damages/1720 "2021-01-25T10:21:45Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![sagarg](https://avatars.discourse-cdn.com/v4/letter/s/b9e5f3/32.png) [@sagarg](https://community.greythr.com/u/sagarg)\ **Post date:** [January 25, 2021, 10:21am UTC](https://community.greythr.com/t/esic-penalties-damages/1720/1 "2021-01-25T10:21:45Z")
What are the penalties for non-payment or delayed payment of ESI contribution? ---
**Author:** ![sagarg](https://avatars.discourse-cdn.com/v4/letter/s/b9e5f3/32.png) [@sagarg](https://community.greythr.com/u/sagarg)\ **Post date:** [January 25, 2021, 10:23am UTC](https://community.greythr.com/t/esic-penalties-damages/1720/2 "2021-01-25T10:23:12Z")
It is depend upon the delay of the contribution as per below slab A.Less than TWO month 5% P.A B.TWO To FOUR Months 10% P.A C.FOUR TO SIX MONTHS 15% P.A D.SIX months and Above 25% P.A on ESI contribution ---
**Author:** ![Ankit](https://sea2.discourse-cdn.com/flex024/user_avatar/community.greythr.com/ankit/32/1201_2.png) [@Ankit](https://community.greythr.com/u/Ankit)\ **Post date:** [January 25, 2021, 10:25am UTC](https://community.greythr.com/t/esic-penalties-damages/1720/3 "2021-01-25T10:25:43Z")
The Corporation may levy and recover damages under _Reg. 31C_ at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution. Period of delay - Rate of damages in % p.a. i) Less than 2 months - 5% ii) 2 to 4 months - 10% iii) 4 to 6 months - 15% iv) 6 months and above - 25% The employer is liable for prosecution under Section 85(a) for the first time, Whoever, having been convicted by a court of an offence punishable under the Act, commits the same offence shall, for every such subsequent offence, liable for enhanced punishment under section 85 A of the Act.